Baidu-backed online tutor Zuoyebang seeks new funding at $10 billion valuation - sources
Chinese online education startup Zuoyebang has started a new fundraising drive at a valuation of $10 billion, said two people with direct knowledge of the matter, as investor appetite for the sector continues to surge amid the COVID-19 pandemic
Chinese online education startup Zuoyebang has started a new fundraising drive at a valuation of $10 billion, said two people with direct knowledge of the matter, as investor appetite for the sector continues to surge amid the COVID-19 pandemic.
The company aims to raise around $650 million in the new round, said one of the people, who declined to be named because the information is private.
Existing investors including FountainVest Partners, SoftBank, Sequoia Capital China and Tiger Global Management are planning to invest in the latest round, they said, adding some new investors are also expected to participate.
A Zuoyebang spokesman told Reuters that "the numbers" are not accurate, but didn`t provide further details. FountainVest declined to comment to Reuters. Sequoia, SoftBank and Tiger Global did not immediately respond to requests for comment.
The fundraising comes as education technology is one of the few sectors that thrived in the pandemic as students were asked to take online classes from home after China and other countries imposed a lockdown.
That has bolstered the valuation of these companies.
Zuoyebang, which is backed by Chinese search firm Baidu Inc, announced in June that it raised $750 million in a financing round led by investment firms FountainVest and Tiger Global. That round valued the startup at $6.5 billion prior to the funds flowing in.
Zuoyebang`s main rival Yuanfudao, backed by Chinese gaming and social media giant Tencent, is also in talks to raise $1.2 billion in a new funding round that will value it at about $13 billion, almost doubling its valuation since March.
See Zee Business Live TV Streaming Below:
Students in China can upload their homework questions and search for answers on Zuoyebang`s platform, which uses artificial intelligence. The company has also launched live-streaming courses.
Startups targeting K-12 education have been particularly popular with investors, raising 12.5 billion yuan in the first half, over 60% of the total amount garnered by the sector, according to Chinese research firm IT Orange.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
04:48 PM IST